MEDFIELD, Mass., September 11, 2009 /PRNewswire/ — Advisers Trusted Adviser, a leading practice management resource for financial advisers and wealth managers, recently surveyed financial advisers on the state of their business-building efforts.  Survey responses provide an in-depth view into what's working and what's not.

The survey questions were designed around what Advisers Trusted Adviser calls The 7 Steps to Business Building.  These seven steps are the result of 15 years of working directly with financial advisers and wealth managers to grow their businesses.

Randomly and without allusion to the 7 Steps, each step was addressed and questions were designed to understand firm "health." Responses came from 354 advisers, representing approximately 335 firms.

The seven steps are:

1. Goal setting;
2. Marketing;
3. New business development;
4. Centers of influence (COI) strategy;
5. Gaining client referrals;
6. Effective public relations; and
7. Client communication.

"The survey revealed that financial advisor planning firms that focus on sales planning and execution are much more successful at generating new business opportunities than those who do not," Michael Slemmer, CFA, principal, Advisers Trusted Adviser, reveals.

The responses show referral-based selling is still the number-one way to build an advisory business, but many are missing the mark when it comes to implementing new strategies.  For instance, social media is a tool that has been practically ignored in this niche market.

And, while most advisers (68%) believe that they have a clear competitive story to tell, the survey indicates that it's not well-expressed in their marketing.  For example, when asked, "To what degree does your marketing material tell your story and help you in selling?" only 36% responded "excellently" or "very well,"  while 64% said "somewhat" or "not at all."

About activities to generate new business — specifically sales planning and execution — respondents rated their firms generally low. More that 62% felt they do an average or poor job; just 37% felt their firm sets and executes new business goals excellently or very well. 

The most-often cited obstacle to new business was "poor marketing," followed by "lack of sales process and tools"  and "no clear plan."

So, just how important is it to set business development goals and have written plans?  According to survey results — very! Only 37 %satisfactorily set new business goals, and just 35% have written business development plans.  On every measure, those who answered positively in these two areas were realizing "much higher" or "higher" new prospects and more overall satisfaction in business growth.  This more highly satisfied group responded with confidence their marketing communications are performing well; higher satisfaction with client and COI referrals; and an overall more satisfactory business-building culture.

"It's positive that most firms are setting firm-wide goals and defining their missions, and they believe they know their strengths, weaknesses, opportunities and threats," Slemmer reports.  "Financial advisers are also doing reasonably well in client communication.  However, they are falling short when it comes to marketing; new business development; increasing their centers of influence (COI); gaining client referrals; and effective public relations."

For more on the survey, and to request summary or detailed reports, visit: www.advisorstrustedadvisor.com/7steps/survey.aspx.

To learn more about Advisers Trusted Advisor's impetus for the survey, "7 Steps to Effective Business Building for Financial Advisers Program," click here.

About Advisers Trusted Adviser

Dedicated exclusively to the Adviser market, Advisers Trusted Adviser provides registered investment advisers and wealth managers a one-stop practice management source for organizing, managing, and growing an investment advisory business.